Political Hype, Rug Pulls and a Crash: What Really Lies Behind the Memecoin Fall

In December 2024, memecoins were leading the trends. Their capitalization flirted with unprecedented highs. And then, in 2025… everything collapsed. Who would have thought that only one year would separate the spotlight from oblivion? Digital fortunes melted away. Beloved tokens disappeared. What could possibly have happened? Volatility, scams, saturation, or mutation? An analysis of a sharp turn in the ruthless world of the most bizarre cryptos. Nothing hinted at such a reversal for such a popular crypto market.

A $150 billion fireworks display… before the big dive

At the end of 2024, memecoins reached a historic peak: $150.6 billion. This surge is partly explained by unprecedented political enthusiasm, notably around the U.S. election. The TRUMP token goes viral, propelled by a mobilized voter base, while LIBRA, associated with Javier Milei, fuels speculation in Argentina. A global fashion effect. And a bubble.

But the euphoria did not last. Barely a few weeks after that peak, the market collapsed. In November 2025, memecoins weighed only $47.2 billion, a loss of more than $100 billion in less than a year. A freefall, brutal, without a parachute. Volatility turned into vertigo.

At the heart of this downturn, one phenomenon: market flooding. In January 2025, 73,000 new tokens were launched every day via platforms like Pump.fun. Excess became indigestion. Rarity, a distant memory. Most of these projects do not survive past a week. Mimicry replaces creation. Suspicion rises.

Investors quickly understood that humor was no longer enough. The dynamic reversed. Too much noise, not enough value.

the controversial launch of TRUMP and LIBRA in January 2025 would also herald the sector’s subsequent precipitous decline, as total memecoin market cap shrank to $47.2 billion in November 2025.​

Source: CoinGecko, State of Memecoins 2025

Rug pulls and chaos: when memecoins turn into a tragic farce

Behind the humorous names often lies a trap. Political memecoins opened the way to a wave of scams. Anonymous teams exploited excitement to mount artificial projects. Then they emptied the coffers. Rug pulls repeated. Small holders ruined. Entire communities saw their gains vanish.

Another toxic tactic: bundling. By multiplying wallets, some insiders simulate organic demand. An illusion of interest that pushes the curious to buy. And lose. Bots, hype houses, pump promises… a whole theater to better sell emptiness.

The crypto press talks about a wave of scams never seen before. Most often, tokens are created, hyped on X, pumped, then emptied. All within less than 24 hours. Some investors discover afterwards that the project website did not even exist.

And yet, the humor continues. PNUT, GOAT, BODEN: all rode the buzz before sinking into digital oblivion. Even centralized exchanges like Coinbase were not spared from criticism for listing some of these ultra-speculative assets.

Despite The emergence of memecoin launchpads, “independent” memecoins still dominate 86.2% of the market.

Source: CoinGecko, State of Memecoins 2025

Dogecoin, DEGEN and the useful (and US) face of meme cryptos

Faced with this chaos, some memecoins attempt transformation. Dogecoin, the ancestor, regains strength: 47.3% market share in 2025. Meanwhile, projects like BONK or FLOKI evolve towards more robust models: DeFi integration, real utility, crypto gaming.

A fascinating case: DEGEN. This token is now the native currency of a layer-3 social network, combining community engagement and blockchain technology. An unexpected turning point for a project born from meme culture.

But above all, one player stands out: the United States. The country accounts for 30% of views on memecoin pages, far ahead of Europe. The attraction to betting, humor, and disruption is cultural. The electorate there transforms campaigns into ecosystems, memes into currency.

Even in the darkest moments of the market, Americans keep investing, tweeting, speculating. For them, memecoin remains a game… sometimes with a negative sum. A crypto sociology in itself, where performance often comes after the show.

Numbers to remember: the hidden side of the memecoin market

• $150.6 billion capitalization reached in December 2024;
• -69% in one year: brutal fall to $47.2 billion in November 2025;
• 73,000 tokens launched per day in January 2025;
• 86.2% of memecoins are created outside launchpads;
• 30% of global interest comes from American users.

While the memecoin universe heals its wounds, another crypto giant shows signs of fatigue. Recently, experts observed an apparent contraction in bitcoin demand, suggesting a bear market cycle underway. The king of cryptos also seems to have to bite his tongue.